If the Two Totals of a Trial Balance Are Not

question 6

Multiple Choice

If the two totals of a trial balance are not equal,it could be due to:

• A) failure to record a transaction.
• B) recording the same erroneous amount for both the debit and the credit parts of a transaction.
• C) an error in determining the account balances,such as an incorrectly computed balance.
• D) recording the same transaction more than once.

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Definitions:

Estimated Warranty Liability

A provision in the financial statements estimating the cost a company expects to incur under its product warranty commitments.

Customer Warranties

Promises made by sellers to buyers to repair or replace products that fail within a certain period of time after sale.

Merchandise Inventory

Merchandise inventory refers to the products a company has available for sale to customers at any given time.

Note Payable

A written promise to pay a specific sum of money to a party on demand or at a predetermined future date.